This paper covers the development of an integrated nonlinear dynamic simulation for a variable cycle turbofan engine and nozzle that can be integrated with an overall vehicle Aero-Propulso-Servo-Elastic (APSE) model. A previously developed variable cycle turbofan engine model is used for this study and is enhanced here to include variable guide vanes allowing for operation across the supersonic flight regime. The primary focus of this study is to improve the fidelity of the model's thrust response by replacing the simple choked flow equation convergent-divergent nozzle model with a MacCormack method based quasi-1D model. The dynamic response of the nozzle model using the MacCormack method is verified by comparing it against a model of the nozzle using the conservation element/solution element method. A methodology is also presented for the integration of the MacCormack nozzle model with the variable cycle engine.